Reliance Industries Ltd To Offer $20 Billion Stake In Amazon

Mukesh Ambani’s Reliance Industries Ltd is offering to sell around dollar 20 billion stakes in its retail business to Amazon. The deal if got successful will turn Jeff Bezos and Asia’s richest man into allies in the fastest-growing consumer markets in the world.

This deal will be biggest ever in India and as well as for Amazon, as per Bloomberg. After the Bloomsberg story, Reliance Industries Ltd shares touched an all-time high.

The deal could be a way of Amazon to accept that it requires a locally-entrenched partner who has a strong presence on the ground. This is so because the majority of Indians still do shopping in tiny street-corner stores.

Reliance would give a brick-and-mortar component to the Amazon. However, Amazon is yet to decide the final size of its potential investment as per reports.

“As a policy, we do not comment on media speculation and rumors,” a Reliance spokesman said in an emailed response to Bloomberg News. “Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations.”

RIL’s deal with Amazon will provide confidence in Ambani’s aim of creating giant e-commerce for India similar to China’s Alibaba. RIL already attracted dollar 1 billion from Silver Lake Partners. Furthermore, as per Bloomberg News reports, U.S. private equity firm KKR and Co. planning to invest dollar 1 billion.

Ambani’s retail ventures investment came after Ambani raised dollar 20 billion selling stakes in his Jio Platforms Ltd. to large investors like Facebook and Google.

Reliance Retail has supermarkets running also being India’s largest consumer electronics chain store, wholesaler of carrying and cash. It also has fast-fashion outlets and a JioMart. JioMart is a grocery store. RIL reported 1.63 trillion rupees in revenue around dollar 22 billion in the year March 2020.


Facebook Comments
Aisha Zainab: